The euro / pound exchange rate reached 17.91 which is also the highest level in the last six months.
The Turkish lira fell to a six-month low against the dollar on Tuesday, with the US dollar now corresponding to with 16.74 pounds. This is the highest level since last December.
Alongside, the euro / pound exchange rate has arrived at 17.91 which is also the highest level in the last six months.
At the same time, despite the increase in production of Saudi Arabia, the price of oil per barrel rose above $ 120, causing severe pressure on the Turkish population, with – official – inflation rising at 73.5% to a 23-year high in May.
THE President of Turkey Recep Tayyip Erdogan However, it announced yesterday that it wants to reduce interest rates again, although inflation reached 73.5%.
“Let no one expect this from us. This government will not raise interest rates. “On the contrary, we will continue to reduce them,” Erdogan told a news conference after the cabinet meeting.
The Turkish president argues, contrary to traditional economic theories, that high interest rates favor inflation. At the end of 2021, it forced the Central Bank to reduce interest rates from 19% to 14% between September and December, causing the currency to collapse.
Inflation in Turkey rose to 73.5% year-on-year in May, the highest level since December 1998, due to rising fuel and food prices, according to official data released on Friday. A year before the presidential election, the opposition and many economists accuse the statistical office (Tüik) of underestimating the true extent of inflation.
“We do not have an inflation problem, but a life accuracy problem,” Erdogan said.
